A car warranty is a written contract, and just like all the other paper work, you should take the time to read over it. Basically, this document everything that is covered, how long it is covered for, what the exclusions are, and if there is any deductible involved should anything happen to your car.

You may think that all warranty contracts have the same terms and conditions but that’s not always true. Make sure that you have a good understanding about what is contained in this legal document.

The sales person may make promises about the warranty that the actual document says it will nothing of the sort. For this reason, it’s always a good idea to carefully read the contract before signing it… don’t take anyone’s word for what the contract says. Double check everything and read it for yourself!

Your peace of mind and financial responsibility matters a lot when dealing with warranties. Let’s take a look at a few suggestions that will help you get the important information that any wise car buyer needs when perusing an extended warranty contract.

Extended Car Warranty

1. Warranties and refunds. Be sure to ask (and look) to see if the extended car warranties you are considering are refundable within 30 days. In case you are feeling the sales pressure to purchase an extended warranty that you don’t want, make sure you can get money back. Don’t feel like you have to do anything you don’t feel comfortable with!

2. Do some research and check to make sure you are looking at a company with good reputation and track record of customer service.

3. Do some reaserch and get a few different price quotes before you head into the dealer to buy your car. If you are looking at buying a car warranty contract from a dealer, keep in mind that there is a mark up in that price… a mark up that can and should be negotiated upon.

Dealing with first-rate reputable warranty companies is worth time and effort you put into doing your research. Remember, it’s your money from your pocket so make sure that you are heading in the right direction.

Get all the information you need before you buy a car warranty contract.

Look for the ones that can provide better service and coverage for the best cost.

In the end, buying warranty contracts doesn’t have to be so risky as long as you’re patient and informed, so take your time to decide if you think that extended warranty is right for you.

O.K… let’s get the really obvious out of the way first.

How long does the car warranty last? But, beyond that… what’s the time limit of the contract and how far does it go beyond the the original warranty with the car?

Of course, you want to the mileage limit to the warranty as well. Even most extended warranties won’t go beyond 100,000 miles.

That’s the basic stuff to know… or ask if you don’t.

The meat of the questions are involved in what exactly is covered. Are repairs included? If so, which ones? And probably more importantly, you need to know what is NOT covered. Parts that break are certainly different than parts that wear out… with extended car warranties it’s very important to know which is covered and which is not.

Deductibles are also a biggie with extended warranties on your car. A deductible is the amount of the repair that you’ll be responsible for before the warranty coverage kicks in. The higher deductible you are willing to risk, the lower the cost of the extended car warranty.

Another point of interest with the deductible that you’ll want to know is whether the deductible is per repair or per visit? This can really make a BIG difference. In others words if you have a $250 deductible… if your extended coverage is per repair and you take your car in and there are 3 separate repairs needed on your car… you’ll be on the hook for $750 bucks. If your deductible is per visit… $250.

Another very important question to get the answer to is – who does the repairs? Or… who is allowed to do the repairs in order for the warranty to cover the actual work? As a rule of thumb, the manufacturer backed extended car warranty is usually good at dealers around the country… a dealer warranty is usually good at the dealership itself… if you’re considering an aftermarket or third party extended warranty, you’ll want to make sure where you have to have any warranty work done.

How does the bill get paid?

Do you pay and get reimbursed… or does the warranty company pay? Also, is there any type of tedious authorization process involved.

What type, if any, scheduled maintenance is required on your end?

And finally, can the extended car warranty be canceled?

Some can be canceled within a certain period, some can be canceled with fees, and others cannot be canceled.

Be sure to do due diligence on the company that is behind your extended warranty and how long they’ve been around, how many customer complaints there have been.